China to increase IC manufacturing equipment spend by $2bn in 2020

Author: EIS Release Date: Feb 28, 2020

Expenditure for IC manufacturing equipment in China is is expected to increase to $14.9 billion in 2020 from $12.9 billion in 2019; says SEMI.

 

China accounts for nearly 25% of  equipment spend expenditure in the sector making it the world’s second largest semiconductor equipment market.

 

For 2016-2020, the expenditure for semiconductor equipment in China is estimated to grow by 23% CAGR significantly higher than the industry average.

 

In addition to demand for capacity ramps by fabless companies and  backend service companies, growing support from China’s National Integrated Circuit Industry Investment Fund and tax incentives for imports of semiconductor equipment will drive  investment.